(Reuters) – Union members at Ultium Cells, a joint venture between General Motors (NYSE:) and LG Energy Solution, in Lordstown, Ohio, voted to ratify a new labor agreement, the United Auto Workers said on Monday.
About 98% of the votes cast were in favor of the new agreement, which includes a 30% wage increase over three years for many workers and a $3,000 bonus for ratification.
WHY IS IT IMPORTANT
As automakers shift toward electric vehicle (EV) production, their battery factories have become a focus of union attention.
The UAW expects the Ultium agreement to set a new precedent for future U.S. battery manufacturing facilities and the entire electric vehicle industry.
CONTEXT
Earlier this month, the UAW awarded a preliminary contract to Ultium Cells, which makes electric vehicle batteries for GM. The plant began operating in 2021 with a non-union workforce, and workers voted to join the UAW in late 2022.
IN NUMBERS
By October 2027, Ultium workers will earn $35 an hour, a 112% increase from before they joined the UAW.